The Danish Labour Market

Denmark is the smallest as well as the most southernly and most low-lying of the three Scandinavian countries and consists of the peninsula of Jutland and an archipelago of more than 400 islands of which 72 are inhabited. Denmark borders Germany to the South, is connected to Sweden by a road and rail bridge and has a tidal coastline of 7,314 km.

Denmark’s main export partners are Germany, Sweden and the US, while its main import partners are Germany, Sweden and the Netherlands.

The Danish labour market is known for its high level of flexibility, a social welfare system and active employment policies. Together, these three components constitute what is known as the "Flexicurity Model" or "The Danish Model" which combines market economy with the traditional Scandinavian welfare state.

Flexicurity provides a dynamic labour market and high job mobility. A major reason for the high degree of mobility is that there are practically no barriers when changing jobs. Therefore, there are always interesting job openings.

Moving to a new job has no effect on pension entitlements or earned holiday time, for example.

Minimal Labour Market legislation

In Denmark, labour market conditions are primarily regulated by collective agreements between social partners. This means that there are no legislations regarding minimum wages. There are minimum requirements set by law in some areas. Examples of these include: the Danish Holidays Act, the Danish Employment Contract Act, the Danish Act on Equal Treatment, the Danish Act on Allowance for Illness or Parental Leave, etc.

If you want to learn more about the Danish labour market, please visit Lifeindenmark.dk.

Lifeindenmark.dk: Further information on The Danish Labour Market Model